Belden Inc (BDC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.01% | 35.15% | 33.54% | 32.85% | 37.23% |
| Operating profit margin | 12.64% | 13.94% | 11.46% | 8.57% | 9.72% |
| Pretax margin | 11.38% | 11.68% | 3.99% | -2.00% | -15.69% |
| Net profit margin | 9.66% | 9.77% | 2.78% | -3.15% | -17.69% |
Belden Inc's profitability ratios have shown fluctuations over the past five years.
1. Gross Profit Margin: Belden's gross profit margin has ranged from 35.15% to 38.01% during this period, indicating the company's ability to generate profit after accounting for the cost of goods sold. The increasing trend in gross profit margin indicates improved efficiency in production and pricing strategies.
2. Operating Profit Margin: Belden's operating profit margin has fluctuated between 6.73% and 12.49%. Although there was a dip in 2021, the margin has generally been above 10%, reflecting the company's ability to control operating expenses and generate profits from core business operations.
3. Pretax Margin: Belden's pretax margin has varied between 3.64% and 12.18%. The significant increase in 2022 suggests improved profitability before accounting for taxes. However, the decline in 2023 indicates that there may be factors impacting the company's pre-tax profitability.
4. Net Profit Margin: Belden's net profit margin has shown the most significant fluctuations, ranging from -18.55% to 9.77%. The negative net profit margin in 2020 and 2019 indicates that the company had incurred losses during those periods. The positive trend since then suggests that Belden has made operational improvements to enhance its bottom line.
Overall, Belden Inc's profitability ratios demonstrate a mix of strengths and challenges, highlighting the company's efforts to enhance profitability through operational efficiency and strategic decision-making. Further analysis of the underlying factors impacting these ratios would provide deeper insights into Belden's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.80% | 11.49% | 7.72% | 4.78% | 6.08% |
| Return on assets (ROA) | 7.49% | 8.05% | 1.87% | -1.76% | -11.07% |
| Return on total capital | 13.39% | 15.77% | 10.92% | 6.46% | 8.64% |
| Return on equity (ROE) | 20.82% | 22.28% | 6.69% | -7.35% | -39.28% |
Based on the profitability ratios of Belden Inc over the past five years, we can observe the following trends:
1. Operating return on assets (Operating ROA) has shown fluctuation but generally upward trend from 2019 to 2023, with a peak in 2022 at 10.29%. This ratio indicates that the company is efficiently generating operating profits from its assets.
2. Return on assets (ROA) has also displayed an improving trend over the same period, with positive values from 2020 to 2023. The company's ability to generate net profits from its total assets has strengthened over the years.
3. Return on total capital has shown a consistent upward trend from 2019 to 2023. This ratio reflects the overall profitability of the company's capital providers, including both debt and equity holders.
4. Return on equity (ROE) has varied significantly over the years but has generally improved from negative values in 2019 to a positive high of 22.28% in 2022. ROE highlights the return generated on the company's equity investment by its shareholders.
Overall, the profitability ratios of Belden Inc suggest an improvement in the company's ability to generate profits relative to its assets, capital, and equity over the past five years. This indicates positive momentum in the company's financial performance and efficiency in utilizing its resources to create value for its stakeholders.